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tv   Your World With Neil Cavuto  FOX News  November 29, 2012 1:00pm-2:00pm PST

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green turns to red just a little bit around noon? that is when people said we are not too sure about this and speaker said i don't know about the progress and after that it has been about progress. behind-the-scenes anyway, on the fiscal cliff. the markets are liking it, it is feeling good, and we will get neil's take. >>neil: well, maybe not so fast, because you bend, we bulk and conservatives sending a stern message to the g.o.p. do not do not do not think of hiking taxes. welcome, everyone, i am neil cavuto. today the democrats are gloating. republicans are the ones who are cracking on tax cuts. >>guest: i am glad some reasonable republicans are breaking from the pack. >> congressman cole represented a watershed, we are happy with any rationale that helps
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republicans accept de-coupling of the bush tax cuts. they seat handwriting on the wall. >>neil: chuck could be happy but conservatives not and they are warning republicans who vote to hike should take a hike. chairman of "for america" said in a letter he will make it his mission to ensure every conservative donor gives not one penny to the republican party or any member of congress. that votes for tax increase. and senator demint echoing that warning lawmakers could face conservative challengers if they hike taxes on anyone. and the conservative rage is very real according to our guest. >>guest: it is very real. i don't know what planet shuck schumer is living on but republicans are mad about the election. the threat is very real.
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money can talk and money can walk. the republican party needs to take need to the fact that if they compromise on no tax increases you will see a revolted. the money will walk away and follow candidate would want to follow what is good for the american people. >>neil: you get a conservative challenger to challenge any of the congressmen who vote on the pledge or tax thing and we have learned in the past election that the republican nominee will go down to defeat. >>guest: some are republican nominees, they made stupid mistakes this election cycle. >>neil: now doubt but --. >>guest: go back to what senator demint said, it is backing candidates that, really, espouse the core of the republican party. it is not just tea party candidates but those who believe and we know because the economy
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its say this, when you lower tax rates, revenue goes up because people are going to spend more money. >>neil: we are beyond that debate because now, i think they will go up but the issue is, how much, and whether republicans will lead. when you heard talks that the president was open to raising the top rate but maybe not as much as clinton, rather than 39.6 percent, 37 percent or 38 percent, what did you make of that? >>guest: the president knows he is not if a position of strength and the front page of the "wall street journal" --. >>neil: why? >>guest: well, winning the election does not mean he has a mandate to do as he pleases. >>neil: could you make the case that the election certified his view that taxes on the rich should be raised? he ran on that. >>guest: republicans were voted back in the house of representatives. >>neil: but, he could argue i
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got elected --. >>guest: what we have seen, the president is showing flexibility. the front page of the "wall street journal" said president obama is showing flexibility on not following through with his mandate to raise taxes on higher earners. this shows the president knows --. >>neil: not raise them as much? >>guest: he said he is showing "flexibility." >>neil: would you, of a conservative mind, be okay with taxes for the upper income --. >>guest: no. like norquist and senator demint have said no tax hikes, period, we node full tax reform. the rates should come down thought go up for one group over another. the group who in this country most small business owners as you know file as individuals and they are making $250,000 or more and they are employing a lot of people in the community. >>neil: the media will say,
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well, you need to sacrifice --. >>guest: but what about small business owners like my dad who has a dental practice, he said if the president follows through and raises taxes on me i will have to labor people off my didn'tal practice. he lives in richmond, virginia, a small pice owner and he is created jobs. >>neil: he will not cut back on the anesthesia? thank you very much. >> now is the time for the republicans to move past the happy talk of i will defined revenues and put specifics on the table. >>neil: did you just hear what i heard? >> happy talk abouts. >>neil: happy talk? i do not think georgia republican is too happy about that characterization. happy talk. what do you make of that?
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>>guest: well, i am stunned at the happy talk that the democrats have and the president has if their glee to raise taxes and it seems like they want to raise tax rates more than a vibrant economy. we are interested in revenue and spending reductions because we believe it will revitalize the economy and create jobs. if tax rate increases created jobs, we would have a wealth of jobs across the country. but we don't the we need to do what gets jobs. >>neil: are you saying, no, no, no, to any adjustment in the stop rate. >>guest: i am saying what we are interested in is a real solution and racing tax rates does not solve the problem. >>neil: that is not what i ask ed. if the latest offer from the white house that is considering splitting the difference between the top rate at 23 and the clinton top rate, would tom
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price reject that >>guest: absolutely. it does not solve the problem. it does not get us in the right direction but moves us further away from the right direction. >>neil: any rate hikes --. >>guest: it is unacceptable. it doesn't solve the problem. >>neil: where is the revenue? where is your revenue? >>guest: we have put solutions on the table through our budget, through closing loopholes, limiting deductions, limiting credits, the things in our budget we have solved the sequester prepare through our reconciliation package and we have put on the stable -- table positive solutions to save medicare and medicaid and social security and the other side refews to come to the taking with reductions. your move, mr. president. >>neil: there has been an unusual own us on mainstream media on republicans and we are not seeing comparable spending
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cuts. i want a sense from you when you say open to other ideas on revenues like closing loopholes and limiting deductions and write offs, the president's folks say it will have to equal the revenue you would get from reverting back to the old rates. would you endorse limiting deductions and special allowances to the point they presumably raise the same amount of money you would get returning to the clinton rates? >>guest: depends where the spending reductions are. this is part revenue and part spending reductions. the president said he wanted three part spending reductions to one part revenue increases, tax increases. where are the spending reductions. that is what we need to see to talk about the specifics. >> when you hear chuck schumer saying we made the painful spending decisions factors into the talks and discussion, is that double accounting and repeating what we were agreed
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to? >>guest: shotly. they try understand last time. the spending deductions have not reduced our deficit. we still have, the president still has $1 trillion plus deficit if this next fiscal year. he had it for the past four and he has it for the next four if he follows the same course. that is not a road to prosperity or job creation. or economic vitality. >>neil: i want to be clear, congressman. republicans do not appear to be on the same page on this, as republicans, are you saying your view, hiking the rates or adjusting in any way is felt universally by your colleagues? we know a couple of them have bolted from that but you are going to hold in lock step on that position? >>guest: there is a universality in our conference with 240 of us in the house of representatives so there are 240 different opinions but by and
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large the majority of us firmly believe raising tax rates is counterproductive and doesn't solve the problem. >>neil: always a pleasure, sir, thank you. take the money and run? not quite but quite a run of companies hiking dividends. and disney is the latest and it will probably not be the last and the calendar could be the reason because january 1, you could, taxed to the high of the income rate if the president has his way they times the rate the dividends taxed now and could prompt investors in stocks that rely on dividend income to skip the stocks entirely and to sell out. period. charles on the hike no one is talking about but should. >>guest: it shed some light on president's solution to the fiscal cliff if you look at what comes in the fiscal cliff, all the tax increases they are not different than what the president wants anyway. he is talking about taxes on dividends and raising the upper rates and obamacare taxes on
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capital gains. a lot of stuff he wants to do that is mimicked in the worst-case-scenario. it is one of mother unsettling parts of the market, the market is at 13,000 and we have zero percent interest rate it is hard to put your money in bonds. >>neil: you see the market you are say --. >>guest: the average person is not in this market. in the 1990's the average joe was in the bull market, an investor society. >>neil: the average people hasn't been in the market since the meltdown? >>guest: why? well, taxes are a reason. this is the latest concern. >>neil: warren buffett said he never knew of a savvy investor that skipped out. >>guest: i was going do bring this up, he is a great speculator. that doesn't noon he knows a damn thing about economic
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policy. i can't believe people turn to him as the sage about the economy. i talk to investors all day, they worry about taxes. particularly long-term investors, average people. >>neil: who does he talk to? >>guest: face it, warren buffett is lately a mouthpiece of this administration. he is their corporate mouthpiece. one of them. particularly the most vocal. he writes op-eds and goes on the stump and shows up with the president, shows up at the state of the union so take it for what it is worth through the political prism of warren buffett who has been a liberal and he has become more so. you talk to average investors not speculators, he is a speculator, he goes in and says, this company is great, this isn't, i will invest if this company, he is a long term speculators and --. >>neil: play that out. say the dividend rates, all the investment-related rates go up,
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what will happen? >>guest: people will not buy big different friend-related stocks. if the economy, does the economy rapidly improve? there are a lot of different factors but by and large people act rationale if they know those stocks going to get hammered, you will pay extra taxes you shy away from the stocks and why warren buffett has the bully puppet, i know he is a billionaire but he is a speculator and a political mouthpiece of the administration and it is tiring listening to this guy like he is the greatest economic mind we have? come on. >>neil: you are going --. >>guest: he hat made his share of mistakes, remember that sleazy deal?
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>>neil: we say the dividend rate could go to the top, whatever the income rate could be the rate you pay on taxes. the rumble over ronald, the unions going after the fast food powerhouse but why you could be the one getting kicked. we bel, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start. our teams have the information you want when you need it. it's anothereason more investors are saying... [ all ] i'm with scottrade.
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>>neil: this is the scene outside of mcdonald's at times square, who took the last of the double quarter pounders? i just left ten minutes ago. anyway, union protesters are gathering right outside there, mcdonald's, the golden arches, the latest target in post election blitz from walmart to the busiest airports, the key shipping port, big labor, flexing their muscle.
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my guest has dealt with unions as the c.e.o. of verizon wireless. this going after mcdonald's, what do you say? >>guest: well, i have a big problem with unions lying to the people that they are trying to organize. in this case they are talking about raising the wage to $15. they have in ability whatever to do that. but isn't that an enticing line? of course. the people will be interested in upping their pay by up to $6 an hour. >>neil: what does that do for a quarter pounder? >>guest: it is not good for the economy or the companies and long run it is not good for employees. we have seen the destruction unions cause in companies across
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the united states they serve their purpose 75 years ago, i give them credit. but, today, unions are obsolete. >>neil: i don't know if i would be that extreme. i worry that you can overplay an election hand. can you make a case as i did earlier, the president won the election, the taxes will be raised on the healthy whether you like it or not but for the unions to descend on capitol hill to descend on walmart and lax, go to shipping ports, to go to one big company after another and now mcdonald's this is everplay. >>guest: they are flexing muscle because of what has happened. with we have another four years of president obama, and know that this administration owes the unions. though know they have an nlrb that will be controlled by democrats and they will have it
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if four years. the policies and decision we will see coming from here will come from the nlrb. >>neil: if you try to stay on a diet, you cannot get into mcdonald's so that is good if you are on a diet. but wendy's was free and clear. i have a whacky thought. they could be hurting themselves severely in that say they were able to unionize mcdonald's, obviously the pay if those higher wages, everything will go up in price. >> maybe a lot. >>neil: they overplay their hand as some argue the democrats, some, are overplaying their hand? ocean -- they will not get anything near what they are saying. this is about trying to get people to join unions. they are trying to get peoples'
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interest. >>neil: but they will get something, like skipping on a pond. >>guest: the issue is union dues. >>neil: thank you. you hike, they take a hike. when governments raise taxes, taxpayers just raise a finger and they go. it is happening in england. it could happen here. really.
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>>neil: this is the scene in new york's times square the target of a gathering of union storm to make sure that mcdonald's unionizes and to make sure they get a minimum of $15 wage for workers there and
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they are making their point with a number of targeted mcdonald's and there is one around the block from us, but there is a big crowd this on sixth avenue and another one if front of our building and that wasn't targeted and that is the one i will probably be going to after work. but, anyway, if now, this is getting to be a big scene at 5:00 this rally formally begins but as you can see, i don't see any of them eating any mcdonald's products, but, anyway, imagine this for a moment. every time you earn a dollar, you keep half and your uncle, well, call him sam, he gets the rest g that were your reality, would you fine a new uncle? the taxpayers if great britain did that after the income tax rate jumped to 15 percent and
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what is going on? >> england has seen it before? we had socialists government who abused the debt, abuseed taxation and it drove out the capital, it drove out successful people and successful businesses and with them, spending, their taxes and the jobs, the tax rate when i was first a member of parliament was 92 percent and she reduced it, margaret thatcher right when she came in. >>neil: you have very few places to hide, if they are all forking over half their money to
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their government, and it is roughly that, then there is in place to go. what do you think is going on? >>guest: yes, it is. and of course, european union is a socialist state, really, and the only places you can go or places not in it like switzerland that targets tax but at a fair rate and has a sound currency. >>neil: do people really mean it when they say, we will leave, we will go, we sick of this, and we are up and going? i was in california yesterday, and i did see that, i saw people going to nevada, a neighbor state where the tax situation is not as onerous, and, it is really going on but here with the mobility if our country in the various income tax rates that are different but the company is trending higher. what do more well to do folks do? >>guest: well, of course,
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california comes to florida the difference between england and the united states, in great britain you can by living a year abroad and coming back for 89 years, you can get out of the income tax and capital gains. in the united states, you are a tax captive worldwide for life but can you escape the huge taxes on spending and sales tax and of course all the charges and fees that the governments now charge in addition to the taxes. so an american can escape somewhat but not as effectively as the british. when margaret thatcher reduced the tax we saw an explosion of enterprise and of course a wave of tax revenue came rolling in. we were able to have a debt repayment schedule and the tax emigres came back from the tax havens that remain in the british empire like bahamas and elsewhere. >>neil: john, always a
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pleasure, if no for other reason than your british accent is better than stuart varney's accent. thank you very much. thank you, john. in the meantime, the man who brokers some pretty night deals for lawrence taylor, what about this one between president obama and speaker boehner? and like s. or you can get out there and actually like something. the lexus december to remember sales event is on. this is the pursuit of perfection.
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>>neil: maybe we just got ahead of ourselves. progress is looking not so good on the budget talks with ed henry at the white house with the latest. i am confused. where are we? >>reporter: santa geithner came to capitol hill and there was optimism but he came without bearing gifts and officer speaker wanted to see something on specific spending cuts. speaker boehner suggested the talks are going form right now. if there is any optimism it is the white house trying to both some life into the talks with too little bits of movement. james carney said the president is now open to spending cuts being part of the fiscal cliff talks. yesterday, the president suggested the tax changes now can be done and spending changes next year and the republicans say, not so were. second, a phone call teen the --
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between the president and speaker boehner and carney said the president laid out any deal has to have an increase in tax rates but he would not be specific suggesting there is flexibility. the top rate does nut have to be 39.6 back from clinton, but something to get a deal jump started. mitt romney was here for lunch the first meeting since after the election and it was awkward and the menu included turkey chili and a white house readout said they promised to "keep in touch" if the opportunity arises where their interests intersect, maybe another way of saying not so much. >>neil: turkey chili. >>guest: healthy. >>neil: it is. and you are healthy. they are not close to a deal? they aren't close to a deal?
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what is the deal? we don't know. when we get a deal, and they will, it will be because of something we don't see, not something we did see. ask any sports agent, many negotiations have turned on an offer no one saw coming, would knows that better than super agent, the man who represents nfl greats such as lawrence taylor and others. everyone has to come away feeling like they got something. >>guest: no question. no question. i don't think any negotiation or rarely does one side -- do they feel you got everything, no, but maybe 90 percent rule, you get 90 percent of what you hoped you feel good. >>neil: what struck me is move on the part of the president, i still think we have to raise
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rates. doesn't have to be 39.6 percent. now, i am probably the only one reads significance to that but it shows wiggle room. you are the other side. how do you respond? >>guest: i think in any negotiations another thing i will say, were like real estate is location, location, location. a lot of negotiation is timing, timing, timing as much as leverage. if the one side is willing, it is no different from what we do in my world of the financial side and the perks and other components. >>neil: it is the perks that close the deal? >>guest: absolutely. >>neil: do you all have private jets and never fly commercially. >>guest: he is showing that "opening" i am willing to bend in certain areas that it doesn't have to be 39.6 percent. >>neil: what perk will you give me, then, right?
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when you negotiate on behalf of lawrence taylor or the other philadelphia -- nfl players and you know you are far apart on money but you say we can get you a suite at a hotel. >>guest: it could be different things, we will not go further north here but can you shake something off this, maybe the length of the contract, you want to be a free agent sooner, so things like that. apples and oranges. >>neil: but if the president is saying i am willing to put revenues and spending on the table despite what his side is telling him, don't do anything on spending he is saying i am willing to entertain that, that, too, is constructive? >>guest: absolutely. >>neil: how do you tell your folks not to cave? >>guest: meaning for the
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president to go back to that side? well, i would think in any negotiation, again, i am sure that the president has been instructed by his cabinet where he can go great his side and where they will refuse to go no different than a general manager. >>neil: never different than what we are told. you negotiate different contracts, the media always has it wrong, right? way beyond what they are talking about? >>guest: correct, anything like that, in the media unless you get it direct from the source, which is very rarely the case, the exact source, i think certain structures are in place, this is a little bit of a give-and-take situation and the dominoes fall in place. >>neil: your gut, you have a great gut for this stuff, where do you see this ending up? >>guest: well, from where the president is looking to take it on the tax rates on the wealthy
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i think they will find a middle ground. he may not get to the exact percentage that the democrats would like to get to. >>neil: he is in the driver's seat? >>guest: no question. driver's seat as of november 6. >>neil: thank you very were. in the meantime, we are looking live at a mcdonald's at time's scare and this is a live shot of the united nations on the east side, we are awaiting a crucial vote on palestinian statehood forget how close we are to it, take a wild guess who is going to pay big bucks to help establish it? i will give you a hint, it ain't the palestinians. new pink lemonade 5-hour energy?
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>>neil: the world could be on the verge of getting a new
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country, with the u.n. voting on a vote for palestine and my guest is here to talk about that. >>guest: we have so much trouble at home with economics and with money, why do we give money to foreigners who really are irrelevant to the interests of the united states strike me as singularly odd. the election is over. the politicians are back in washington. they can ignore the needs of the american people for the next four years. >>neil: what would happen with the palestinian state? just because the u.n. votes to get the process rolling for statehood does not mean you have a palestine tomorrow but it leads in that direction. so, what would happen if in the end despite all the bumps along the way, that happens, what are we looking at? >>guest: you are looking at paying for the creation of a state in palestine and you will also on the other side, make
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sure the directlies don't worry too much, you will give them a lot of money and a lot more guns but i don't think it is a problem we have to worry about. the israelis will never let the palestinians have a state that is a nation-state, it will be a colony of the israelis if anything happens like that. >>neil: but what -- binyamin netanyahu condemned palestinian president saying that the atmosphere was hostile and poisonous and fouled false propaganda. this train seems to have left the station. i see concerns but this gets worse, thens right? 9 more likely hood of leaving the money aside, it will complicate matters in the middle east, won't it? >>guest: of course. there is in solution to the palestinian and israel problem but violence. the israelis have cut up the west bank and gaza to the extent
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where you can't put a nation state together and the leadership of the palestinians is slowly going in the islamist direction. we are supporting a movement that will put islamists in power there that will only make the palestinians more islamic so, we are really in a self defeating situation >>neil: why do we put good money after bad? the people hate us more than they ever have, again and again and again. >>guest: stop it all, sir. we have a political elite in both parties who measure their esteem by what they do overseas. we have a crumbling never structure at home, we have a tragic deficit and yet they take money out of your pocket and my pocket and give it to foreign gangsters. it is something the founders could never have believed could
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ever happen. >>neil: you have to have a network of close friends and help them and get the word of democracy out and you say that is fine? >>guest: each dollar we spend on democracy or creating overseas creates moran -- more enemies and costs us more in expenditures. we have zero interest in growing democracies overseas. >>neil: good to see you, michael, the $60 billion includes $20 billion forgiveness in debt after mubarak takes over. you can so what we have gotten. not much. when sandy socked sandy. a direct christmas hit. only gaviscon® forms a protective barrier that helps block stomach acid from splashing up- relieving the pain quickly. try fast, long lasting gaviscon®.
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>>neil: the october super storm causing november sales if retail to dive. how much? >>guest: retailers lost multiple key shopping days as stores were closed or saw little business after the super storm as residents tried to recover. target, we know the chain was the largest discount retailer has many stores along the east coast and they saw sales follow 1 percent missing a 2.1 percent expected rise. macy's sales fell 1 percent during the month, the first sale drop for the department store chain in three years. a rise in sales was expected there. and in all of this despite the company saying they had the largest volume thanksgiving day weekend in history not enough to overcome weakness from sandy. kohl's saw sales plunge 5.6 percent and all of the regions
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reported negative sales with the mid-atlantic and northeast and the most challenging was weak sales following the super storm. gap was resilient posting 3 percent rise in sales and it was still shy of estimates but they made in mention of hurricane sandy. it has many stores if that part of the country. lastly, the limited brand bucking the down trend posting 5 percent rise in stores better than expected and victoria's secret had record setting thanksgiving weekend with a negative back of hurricane sandy by percent or 2 percent. despite the negative impact, total thanksgiving weekend spending reached more than $59 billion but most of the retailers say it was just very difficult to overcome all the weakness because of the storm early if the month despite the record sales over thanksgiving
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weekend. >>neil: thank you. 9/11 first responder and iraq war vet, prison guard if new york state, he is a survivor no doubt but when super storm sandy destroyed his home that is when real trouble set in. let's go through it. >>guest: the day the storm came i went to the house to fill up the generators and we used a table to try to float out, he and my table from a table to a rooftop we took the rooftop three quarters of the mile away from my house and we ended up climbing through debris and swimming the let of the way. nothing left of the house, the house is half a mile off the original foundation in the middle of a field now. middle of federal land. >>neil: what has fema done? >>guest: given us $2,800 for rental assistance. >>neil: what was the valve the now >>guest: around $550,000.
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$2,800 after half a million investment that is gone. >>guest: we take it day-by-day. i look forward to the future but i also pay attention to what is going on with the insurance companies. right now --. it is hard to try to pick who is the problem. flood is flood. it is capped out. i owe $450,000 on the house. where do i go? >>neil: where do you live now? >>guest: we have an apartment and are trying to move on, i have two children, christmas and coming and their birthdays are coming. they need normalcy. >>neil: i know you are a war hero. >>guest: i have been in a war zone and that is a war zone. complete devastation. my house is not the only one, 13
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other houses completely gone. going. the families have nothing left. >>neil: the officials at the local and national levels they are patting themself on the back. >>guest: it is slow going. i am not here to blame anyone but i would like to see more help coming through. >>neil: what is the problem? where is the bottleneck? >>guest: i don't know. i am not a public official. i go to my job, this is their job to get the movement. >>neil: they need to start doing something. we are watching and following you. thank you very much. thank you for your service, as well. >> mickey d's is in a union pickle and we will go like and things will get likely. >> gas goes up. rent goes up. [ male announcer ] are you considering a new medicare plan?
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but right now, union crowd. they want to unionize mcdonald's. shibani is following this. >> look at the crowds there, neil. you couldn't pay me to walk near the times square location of mcdonald's. i think there are a lot of people feeling that way. i think it's a big deal, not because of the size of the crowd. maybe it's not the biggest protest that we have seen, but it's the timing more than anything else. we and i know the retailers, the fastfood companies and people that sell consumer facing items to hit them and protest in front of the store front in front of the holiday season -- >> neil: multiple stores. >> right. >> neil: lax and there is a pattern. >> it hit them where it hurts and at the time that hurts the most. that is the telling, the timing more than anything else. >> neil: mcdonald's issued a statement match. jurorty of mcdonald's restaurants are owned and operated by independent men and women and offer
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competitive pay in the restaurant industry. union, you report, have to be a lot higher. >> i have no doubt that the claims are credible. it seems there are different avenues to be taken. standing here in the cold and screaming we can't put food and clothing, clothe our children is probably not the most rational argument to put out there. this is a time where consumers need to be spending. the holiday season. they don't want to deal with this. you keep people consuming the quarter pounders and not allow them to buy the television sets from wal-mart. >> i think so. i think people get annoyed by this. they want to go out, happy time of year. they want to spend their money an they are annoyed by this. we don't have compassion.


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